Look At This Critical Zone For The SPYs
Orderly
S&P
Since January, the S&P 500
has been moving in a very smooth fashion to the upside with very symmetrical
corrections along the way. Check out the chart below: The first correction in
January was 4 days and 3.25 points. The next correction at the end of February
lasted 3 days and was 2.88 points in size. Finally, from the high on March 7
to the low today we have a 3 day correction and 2.85 points. So how do you
play this?
The way I look at it, the
symmetry support zone from 120-121 is extremely critical here. If the S&P 500
SPDRs (SPY) choose to dip and close below 120 and violate that symmetry zone,
then I’m inclined to believe we are seeing the first crack in what will be a
deeper correction and the March 7 high will be a critical swing high point.
On the flipside, if today’s
low into symmetry “sticks†and we climb up and out of this zone after printing
this doji candlestick on Thursday, then we could be moving up to hit another
new high in this immediate trend. In that event my target would be 125-126.
Do I know which scenario
plays out? Absolutely not! I just make decisions based on where
price is relative to that 120-121 symmetry zone and act accordingly.
Take care folks!
Derrik